Making forecasts around the UK property is not always easy. Over the last few years there have been a number of false dawns and promises of recovery that never materialised. However now there are signs that the market has reached its lowest level and could be on the way up again. Many places have seen small increases in value this year and the trend seems set to continue into next year as well. So is now a good time to buy if you are a first-time buyer? While prices are on their way up once again they are still at lower levels than July last year. The outlook for the rest of 2011 and early 2012 varies on whom you listen to. The general consensus is prices will increase slightly or remain flat. So if you are a first time buyer now is a great time to start looking. The cost of housing is not likely to fall and while any rises might be small they’ll only add to the cost of purchasing a house. If you’re thinking about purchasing your first home or flat here are a few pointers:

Mortgage and Other Expenses

The demand for big deposits by many lenders is one of the main reasons for the lack of activity in the market. With relatively few new buyers entering the market the volume of houses sold reached a record low in 2010. However although 10% home loan deals are still the norm there are indications that lenders are easing their restrictions on lending a little. More 95% deals have started to appear on the market and while the interest on them may be slightly higher they’re still competitive. When you are saving for your home there are many other costs that you need to think about along with the deposit. There is stamp duty to pay for on many homes, solicitor’s expenses and surveyor’s fees as well. Do not forget the cost of furnishing your home and the fact you will be paying the bills on your own. This can be quite an increase in your monthly budget if you’ve been living with your parents or in shared accommodation. New or Used Home? With the low level of activity in the house market there is a large stock of unsold new homes readily available. Several developers are offering some great deals and incentives on the homes they have to make them sell faster which can add up to 10% of the selling price. A new house will also be built to much better standards and feature a 10 year warranty. Although a used home may be cheaper to purchase it will be more expensive to run and look after.

Shared Ownership

The popularity of shared ownership plans has grown significantly in recent years. They enable people to buy a share in a house that they otherwise would not be able to afford . A mortgage is paid on the part of the property you own and rent to a housing association that owns the other share. You can increase the share of the home you own over time so that ultimately you can own 100% of it. Joining a shared ownership scheme means that you do not need to save for years to find a large deposit and you can get on the property ladder a lot quicker. Another option is buying with a friend or group of friends. Although this can seem like a good option it can be fraught with pitfalls for the unwary. Make sure that you use a lawyer to draw up legally binding contracts.

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